Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Expedited CARD Act moves forward with CU amendments
WASHINGTON (10/23/09)--The House Financial Services Committee on Thursday approved H.R. 3639, the Expedited CARD Reform for Consumers Act of 2009. This legislation would move all of the outstanding effective dates in the Credit CARD Act to Dec. 1. An amendment that would exempt depository institutions with under 2 million credit cards in circulation from the expedited effective dates contained in the bill, offered by Rep. Shelley Moore Capito (R-W.V.) and Rep. Brad Sherman (D-Calif.), was added to the legislation via voice vote. Sherman also joined Rep. David Scott (D-Ga.) to offer an amendment to strike from the bill the expedited effective dates for gift cards. This amendment was also added via voice vote. The Credit Union National Association has supported both of these amendments and worked closely with these offices on the amendments. CUNA in a letter to committee Chairman Barney Frank (D-Mass.) and ranking Republican Spencer Bachus (R-Ala.) further praised the Capito/Sherman amendment, saying that it “recognizes the burden” that the expedited effective dates provided by H.R. 3639 would have on small issuers. “Many steps need to be taken before credit unions and others will be able to comply” with the CARD Act in “any orderly fashion,” CUNA President/CEO Dan Mica said, adding that “while the three month period between December and February is a relatively short period of time, it is a critical period of time for credit unions to take these necessary steps.” Federal Reserve Board Chairman Ben Bernanke has also presented the Fed’s views on H.R. 3639, saying that while he could not predict how the accelerated CARD Act effective date would affect interest rates and availability of credit to consumers, the new date “would mean that consumers would receive important benefits and protections earlier.” Responding to a series of questions from Bachus, Bernanke added that the Fed would “issue final regulations without waiting for comments” if the new, accelerated compliance date of Dec. 1 prevented them from receiving industry comments in a timely fashion. The Fed may also have to implement portions of the CARD Act governing fees and disclosures for gift and other prepaid cards, credit card penalty fees, and rate increases without advance public comment if the effective dates of those provisions are moved forward to Dec. 1. Both large and small creditors “must make extensive changes to their systems and business models” to comply with the CARD Act, and Bernanke said that the amount of time needed to comply with the act “may vary by creditor and provision.”
Other Resources

RSS





print
News Now LiveWire
#creditunions celebrate #EarthDay2015 by being green aware with e-statements, hosting shred events, planting trees
5 hours ago
From @WSJ: 33% of companies say it took them more than 1 yr to discover a data breach. http://t.co/a0MxV68X6t http://t.co/lkglx6WvKs
9 hours ago
.@CAMCouncil taps into @MICreditUnions' career, tech training resources http://t.co/sotnfCUgIo
10 hours ago
#Inflation ticks up in March, still relatively flat #NewsNow #Market http://t.co/PyAvwdkJ4M
10 hours ago
#NewsNow Ill. league groups elect board, exec officers http://t.co/KAG8MtbGsv
11 hours ago